Private sector engagement has proven to be a game-changer for rural transformation. Projects with strong private sector participation under IFAD achieve average income gains of 64 per cent—four times higher than projects without such engagement. The public-private-producer partnership (4Ps) model is central to this success, as it explicitly positions small-scale producers as equal partners rather than mere suppliers or beneficiaries, fostering sustainable, community-driven economic growth.
IFAD is applying the 4Ps model through the Enhanced Linkages between the Private Sector and Small-scale Producers (ELPS) initiative. Launched in 2023 by Japan’s Ministry of Agriculture, Forestry and Fisheries, ELPS links corporations from the Global North with small-scale producers in the Global South through joint public-private investments. As the implementing agency, IFAD leverages its network of rural communities and producer organizations to broker scalable, mutually beneficial partnerships that raise incomes, create jobs, and drive long-term economic growth.
Japan has been a key partner for IFAD since 1977, contributing over US$662 million to IFAD replenishments, including US$42.7 million for IFAD13 in 2025. Its ongoing support now helps attract private investment, along with capital, technology, and market access. As of January 2026, Japan allocated US$3.6 million for ELPS, and the initiative has mobilized US$360,000 in private co-investment from leading Japanese companies. Through partnerships with UCC Japan and Marubeni, ELPS is supporting Tanzanian coffee producers to double productivity by 2027 while improving supply consistency.
ELPS is also expanding to Bangladesh and Rwanda. In Bangladesh, a partnership with Euglena Group focuses on improving sesame post-harvest handling and storage, aiming to raise small-scale farmers’ incomes by 10–20 per cent while diversifying Japan’s import base. In Rwanda, collaboration with OSTI Group helps 500 farmers adopt organic practices and improve macadamia management.
IFAD’s core funding, AA+ credit rating, and long-standing network are critical in attracting national and international co-financing. Its trusted presence on the ground enables farmers to increase productivity and incomes while giving businesses more reliable supply chains. By positioning private sector partners as leaders in ELPS, the projects ensure sustainability beyond the initial two- to three-year timeframe, build trust among stakeholders, and lay a foundation for future public-private initiatives that strengthen inclusive, resilient rural economies.
The ELPS models in Tanzania, Rwanda, and Bangladesh illustrate how the 4Ps approach can be adapted across IFAD’s portfolio. By combining private investment with local producer engagement, the initiative strengthens agricultural supply chains, supports small-scale farmers in growing and selling more, and promotes environmentally, economically, and socially sustainable farming systems.
